FRAUD SUMMARY - STOCKHOLM

UNCLAS SECTION 01 OF 04 STOCKHOLM 000662

STATE FOR CA/FPP
PASS to KCC Williamsburg
SIPDIS
E.O. 12958: N/A
TAGS: CMGT CVIS KFRD ASEC CPAS SW
SUBJECT: FRAUD SUMMARY - STOCKHOLM

REF: STOCKHOLM 0224

STOCKHOLM 00000662 001.2 OF 004





1. Summary: As Sweden hosts the Presidency of the European Union
from June through December 2009, one of the top priorities at the EU
and national level remains refugees. Embassy Stockholm continues to
deal with Sweden's large population of third country nationals, many
with insufficient identification documents and weak ties to Sweden.
In addition, the ESTA program has highlighted several Swedish
travelers with possible ineligibilities. FPU Stockholm has had
several notable fraud cases and is working on developing fraud
intelligence products useful for the Nordic Baltic region. End
Summary.

Country Conditions
--------------


2. Sweden has long been considered a low-fraud post, but FPU
Stockholm questions whether these categorizations are helpful, if
not outright misleading. Sweden is a Visa Waiver Program country,
so most business and tourist travelers utilize their Swedish
passport to travel to the United States. When Swedish passport
holders do apply for B1/B2 visas, they are usually looking for
extended visits or have been required to do so by the new Electronic
System for Travel Advisory (ESTA). Sweden is also home to a diverse
population of Third Country Nationals, including one of the largest
concentrations of Iraqis and Iranians in Europe. Because of
Sweden's relatively liberal refugee and asylum policies, many these
refugees receive Swedish citizenship relatively quickly. The result
is steady stream of difficult cases in all three units of the
consular section and a very busy FPU.


3. FPU notes that Sweden's economic recovery drags behind much of
the rest of Western Europe with unemployment projected to stand at
11 percent for the next 12 months. While the Swedish state's
generous unemployment benefits guard against abuse of the Visa
Waiver program, many younger Swedes are looking to travel to the
U.S. for lack of economic opportunities in Sweden. More
importantly, newer immigrants to Sweden will have an increasingly
difficult time entering the Swedish labor market and may seek
opportunities in the U.S.


4. In the last year, the Swedish Migration Board has become less
willing to grant permanent residence to many asylum seekers,
particularly Iraqis. Not surprisingly, the number Iraqi asylum
seekers have dropped considerably. Somalis are now the leading
asylum seeking population in Sweden with a steadily increasing rise
in Afghanistan refugees. As part of its EU Presidency, Sweden is
pushing for the EU to share the financial and social burden of
hosting asylum seekers will dedicate a significant portion of its EU
Presidency to establishing EU-wide asylum/refugee policies.

NIV Fraud
--------------


5. Most of the FPU's time is focused on NIV applicants. During the
reporting period, Stockholm adjudicated over 16,582 NIV cases with a
refusal rate of 18.82 percent (including 221g refusals).
Stockholm's applicant pool represented 126 different countries.
Over 21 percent of our NIV applicants apply with non-Swedish
passports. The refusal rate for Swedish citizens was 13.80 during
the reporting period. The FPU provides three basic services:
pre-checking foreign passports and select applicant categories;
consular interview assistance; and referral investigations. During
the reporting period, the FPU pre-checked approximately 900 third
country NIV applicants. Approximately 100 cases were referred to
the FPU during or after the interview process, resulting in 26
confirmed cases of NIV fraud and 11 outstanding requests for
additional documentation from suspect applicants. Not reflected in
these statistics is the number of fraudulent activities discovered
during pre-interview checks which lead to 214(b) refusals.


6. Impact of ESTA. With the implementation of the ESTA for Visa
Waiver Country travelers, Post has seen an increase in Swedish
citizens with legal issues applying for B1/B2 visas often because of
prior criminal or immigration violations. In most of these cases,
visas are eventually issued after receiving appropriate DHS
waivers.


7. Comprehensive investigation techniques helped FPU Stockholm
crack a number of cases. As one example, a single male wanted to
spend 6 months traveling the US after a recent 3 month VWP visit.
After questioning by the FI, the applicant confessed that he was
actually planning to resume his work as an auto mechanic. A blog
betrayed a disc jockey who told the consular officer that he never
worked in the US even though his blog highlighted his work in
several major US cities. An aspiring yoga "student" had her plans
to continue working illegally as a model and yoga teacher revealed,

STOCKHOLM 00000662 002.2 OF 004


in a twist, by her roommate's blog. Finally, one failed applicant
to a Texas community college gave an interview to a local Swedish
tabloid in which she claimed that she was refused for being "too
beautiful for a visa" and suspected of being a sex-worker during her
previous stay in Texas. The FPU was not, in fact, concerned with
her looks so much as her provocative internet advertisements for
"sexy modeling," which were purged from the internet shortly after
her visa interview.


8. Iranian B1/B2 applicants. Post conducted a validation study of
B1/B2 Iranian applications in Sweden and compared the profiles of
successful travelers with overstays and refused applicants.
(REFTEL) Given Sweden's large Iranian expat and visitor application
pool, the study confirmed that Post's general approach is effective
at avoiding overstays. In follow on discussions with FPP, FPU used
recent studies from Frankfurt and Ankara to urge other FPUs to
collect a more uniform set of data points to assist in comparing and
evaluating future studies. Post's NIV Chief, Claire Smolik, also
attended the September FPP conference on Iranian travelers and is
working with FPU to implement best practices.


9. Russian B1/B2 applicants. Stockholm is working with several
other regional FPUs to finalize a collaborative study of Russian
B1/B2 applicants. Although initial indications are that
Nordic-Baltic posts make good decisions on issuing to Russian
applicants, there are clearly local differences in the social and
economic conditions for expat Russians that warrant closer
attention. FPU Stockholm hopes to conduct future region-wide
validation studies to continue to foster cooperation.


10. FPU Stockholm is increasingly concerned with NIV E Visa
applications and is reviewing our standard operating procedures for
handling this case. In May, an NIV Clerk who handles this portfolio
met with FPU London to discuss best practices. One ongoing case
involves a restaurant possibly being used as a front for illegal
business activities.

IV Fraud
--------------


11. The IV Unit provides FPU Stockholm with ample opportunity to
hone our fraudulent documentation analysis techniques. The IV unit
has seen a rise in fraudulent IV and K visa cases among a growing
number of applications from petitioners and beneficiaries coming
from refugee populations from Iran, Iraq, Somalia, Eritrea, and
Ethiopia. Thirteen IV cases were formally referred to the FPU
during the reporting period, two of which remain unresolved. The
FPU also inspects various identification documents, mostly from
Iraqi or African applicants, on average 1-3 cases per week.


12. Inter-Embassy cooperation is vital. Because of the large Iraqi
asylum community in Sweden, Post continues to find a heightened
number of questionable Iraqi passports and other supporting
documents. Post works closely with Embassies Amman and Baghdad in
addressing these issues. Several African posts have similarly been
helpful in confirming document fraud in Sweden's growing African TCN
community.


13. Relationship fraud presents the most difficult evidentiary
challenge. Time-intensive and detailed interviews, including
telephone interviews with the petitioner in the U.S., can lead to
positive results. In one case, the FI noted the absence of wedding
bands in a photo taken the day after a wedding ceremony. Further
interviews of both the applicant and his petitioner (by telephone)
resulted in a series of conflicting statements. More than convinced
that a marriage broker arranged the entire trip, Post returned the
petition with a recommendation for revocation. In another case, the
fiance applicant could not identify the store where his Amcit
petitioner worked, but managed to recall the address. This was a
remarkable lapse because the petitioner works at an American chain
convenience store called Seven-Eleven that is also ubiquitous in
Sweden.

DV Fraud
--------------


14. Stockholm had three significant DV fraud cases. In one case,
FPU Asmara assisted in confirming Stockholm's suspicions that two
documents supporting an applicant's claim of marriage were
fraudulent. In a second case, a DV applicant's high school records
were proven to be fraudulent, thanks to assistance from FPU
Kinshasa. In the third case, the Facial Recognition feature in the
CCD indicated that a DV applicant may have used his brother's
identity in an earlier NIV application. The applicant stalled for
weeks on Post's request for a recent photograph of his brother. In
late September, the applicant's last minute effort to send in an
undated "recent" photo of his brother (probably himself) confirmed

STOCKHOLM 00000662 003.2 OF 004


FPU's concerns.

ACS and U.S. Passport Fraud
--------------


15. Stockholm's use of a four part ACS fraud checklist has lead to
greater use of FPU in ACS cases. FPU reviews approximately 4-7 ACS
cases per week based on these indicators and conducts an average of
one ACS fraud interview per week. The checklist has been shared with
other EUR posts. In one case involving an otherwise routine
passport renewal application, FPU confirmed that the applicant's
Swedish mother had taped a more recent photograph of the child on
the expired passport. After careful investigation, FPU concluded
that the altered passport was never used for travel or
identification purposes and permitted the applicant's parents to
present additional proof of identity. In an ongoing case, FPU has
confirmed a US passport holder maintaining different, if similar,
identities.

Adoption Fraud
--------------


16. Post has had no adoption cases in this reporting period.

Use of DNA Testing
--------------


17. Post has utilized DNA testing for DV and some ACS cases.
Overall, our experience has been positive. FPU and IV are working
to implement the new DNA testing guidelines. In one K-1 case, DNA
testing was required of the beneficiary. The fiance claimed to
have impregnated the petitioner while they resided in a Guinean
refugee camp. The child was born in the U.S., but the applicant was
not listed on the birth certificate. After the petitioner received
the DNA test results, she refused to share them with her fiance who
decided to withdraw his application in August.

Asylum and other DHS benefit Fraud
--------------


18. Although post has no fraud to report, Post's increasing number
of Iraqi translator visa applications has demanded an increasing
amount of attention from FPU. FPU works closely with Embassy
Baghdad to confirm identification documents and often returns
security badges retained by former State Department and Department
of Defense workers. Even with Embassy Baghdad's support, Post often
has a difficult time verifying prior employment in Iraq or other
claims.

Alien Smuggling, Trafficking, Organized Crime, and Terrorist Travel
--------------


19. Sweden is often regarded as a transit center for Chinese and
Eastern European trafficking rings to other European countries, but
not to North America. However, Swedish authorities are highly
focused on combating sex trafficking and has made it a centerpiece
of their EU Presidency. Sweden is a destination country for
asylum-seekers. To date, FPU has detected no systematic effort to
use Sweden as a transit to the United States. FPU is following up
on leads suggesting emerging routes through Central America and
Canada. Although limited in travel funds, FPU has made an effort to
visit immigrant-intensive communities to better understand those
populations. Increased cooperation with FPUs in Oslo and Copenhagen
can assist Stockholm in understanding the two Swedish cities
(Gothenburg and Malmo) that are both close to and demographically
similar to Oslo and Copenhagen.


20. There are false document production rings in Sweden that are
targeting Swedish authorities and many Iraqis also utilize false
documents in order to get to Sweden. Some of these falsified
documents pass through the Embassy, but more importantly, the
Swedish identification documents are more often used in applying for
United States visas. A typical Iraqi refugee will pay money to be
smuggled to Copenhagen, often via Turkey using the authentic
passport of an Iraqi-Swedish or Iraqi-UK citizen. The subject
returns the false documents to the smuggler travelling with him or
her and then enters Sweden without identification papers on a
train.

DS Criminal Fraud Investigations
--------------


21. Post has no pending DS criminal investigations. Cooperation
with the RSO and RSO staff has been good. RSO Stockholm currently
has individuals with experience in Iraq, which has proven to be very
helpful in dealing with Iraqi applicants.


STOCKHOLM 00000662 004.2 OF 004


Swedish Passport, Identity Documents, and Civil Registry
--------------


22. Sweden issues EU-compliant passports. FPU has previously
documented the Swedish government's relaxed attitude about identity
requirements for refugees. In the case of refugees who have
obtained Swedish citizenship, FPU never relies on the Swedish
passport as sufficient proof of identity. In the case of refugees
with permanent residency in Sweden, FPU notes that an "identity not
confirmed" is used by the Swedish authorities when original birth
documents are not presented, which are rarely subjected to serious
scrutiny otherwise. FPU also notes that Swedish migration
authorities have become more rigorous in their identification
requirement for asylum-seekers.

Cooperation with Host Government Authorities
--------------


23. Sweden's privacy rules restrict the sharing of most personal
information about Swedish citizens and residents by Swedish law
enforcement. Nevertheless, the Swedish authorities work very hard
within the constraints of the Swedish legal system to be of
assistance to FPU inquiries. FPU has good relationships with all of
the major migration and law enforcement authorities and regularly
receives fraud email alerts from regional airports. In addition,
Mr. Sandmark has provided training on lie detection and document
fraud to ICTS (International Consultants on Targeted Security) staff
at Stockholm International Airport. In the reporting period, FPU
has had successful outreach meetings with representatives from the
government student loan agency (CSN),which promises to develop into
a mutually beneficial collaboration. In our first case, FPU
Stockholm helped CSN identify a ring of Swedes using a fraudulent
I-20 to apply for Swedish government loans, but with no plans to
actually apply for a student visa. Finally, FPU Stockholm is
engaging with representatives from Sweden's higher educational
admissions verification team to help combat fraudulent foreign
student applications to Swedish universities.

Staffing and Training and Outreach
--------------


24. The FPU consists of one part-time Fraud Prevention Manager (Dan
Mangis) and one LES Fraud Investigator (Marten Sandmark) with
significant non-FPU duties in the NIV during certain parts of the
year. The current FPM arrived at Post in August 2008 and will leave
in July 2010. He serves as the Deputy Consul and manages the IV
Unit. His replacement is receiving FPU training this spring. The
FI also has significant responsibilities in the NIV Unit, but works
full time in the FPU when seasonal help is available. Post has
trained a backup Fraud Investigator, Maria Sederholm in order to
free additional time for fraud analysis projects, particularly
relating to regional issues and trends. Both the present FPM and Mr.
Sandmark have taken all of FSI's available fraud training courses.
When practical, FPU will nominate backup Fraud Investigator Ms.
Sederholm for fraud training.


25. Stockholm is piloting the new Consular Case Management System
(CCMS) and is happy to lend a small post perspective to the
program's evolution. Post has made several suggestions and looks
forward to the rollout of the final product.


26. Reaching out to other Posts: FI Sandmark has attended the
Frankfurt Fraud Conference in September and participated in a panel
discussion with other experienced fraud investigators. Earlier in
the year, FI Sandmark joined an innovative "chat conference" with
other EUR LES fraud investigators in order to develop cost-efficient
ways to collaborate with other posts. FPU has hosted consultation
visits from FPUs in Oslo and Copenhagen and provides and receives ad
hoc support to posts in EUR, AF, and SCA. FPU Stockholm initiated
the first regional study of Russian B1/B2 applicants in the
Nordic-Baltic region and plans to use H&L funding from FPP to
conduct training/consultation visits with Copenhagen, Oslo and at
least one Baltic post. FPU Stockholm hopes to establish a more
structure regional FPU working group to develop more regional
studies.


BARZUN